Thanks to the continually rising cost of college tuition, millions of Americans are struggling to pay off their college loans. If you are one of them, then you may be wondering what student loan forgiveness options exist in 2023. Here is a breakdown of five popular student loan forgiveness opportunities available this year.
Public Service Loan Forgiveness Program (PSLF): The PSLF program was designed to help those with federal student loans based on a certain type of employment. In order to qualify, you must work full-time in a public service job for 10 years and make at least 120 qualifying payments on your loans. After that, the government will forgive any remaining balance on your loans.
Income-Based Repayment Plan (IBR): IBR plans are available for both federal and private student loans. The plan sets your monthly payment amount based on your income and family size, ensuring that you can afford it even if your income is low. After making 20-25 years’ worth of payments, any remaining balances on your loans will be forgiven.
The Teacher Loan Forgiveness Program: This program is specifically designed for teachers who have worked full-time in a low-income school or educational service agency for at least five consecutive years. Upon completion of the program, up to $17,500 of your federal student loan debt may be forgiven.
The Perkins Loan Cancellation Program: This program offers complete cancellation or partial cancellation of Perkins Loans if the borrower meets certain criteria such as teaching special education, working in law enforcement or serving in the military for at least three years. Additionally, borrowers must make all required payments during this period before they can qualify for loan cancellation benefits.
The Military Student Loan Forgiveness Program: This program was created by Congress to help veterans and active duty personnel repay their college debt while they serve our country. Depending on individual circumstances and military branch affiliations, qualified individuals may receive up to 100% forgiveness of their student loan debt after a set number of qualifying payments have been made under an Income Driven Repayment Plan (IDR).
Student loan debt can feel overwhelming but there are several options available if you need help repaying them in 2023. Whether you choose an income-based repayment plan, teacher loan forgiveness program or one of the other options listed above, there is likely a way to get some much needed relief from those college expenses! Do some research into each option so that you can determine which one best fits your situation and financial goals going forward into the future!
